The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Santander Mexico (BSMX). BSMX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.63. This compares to its industry's average Forward P/E of 11.54. Over the last 12 months, BSMX's Forward P/E has been as high as 9.58 and as low as 3.67, with a median of 7.20.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BSMX has a P/S ratio of 1.01. This compares to its industry's average P/S of 1.6.
Finally, our model also underscores that BSMX has a P/CF ratio of 5.94. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BSMX's P/CF compares to its industry's average P/CF of 13.73. Over the past 52 weeks, BSMX's P/CF has been as high as 8 and as low as 2.56, with a median of 3.98.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Santander Mexico is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BSMX feels like a great value stock at the moment.
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Grupo Financiero Santander Mexico S.A. B. de C.V. (BSMX) : Free Stock Analysis Report
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